29 Sep Around the Web: A Week in Summary
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A recent article from Business News Wales entitled “Selling Your Business? 5 Tips to Kick Off Negotiations” offers suggestions for business owners to help increase the likelihood of a successful business sale. Early negotiations lay the groundwork for the transaction, so it is important to get it right from the start.
Ask yourself the following questions when preparing to list your business for sale:
- What is the sale price?
- What will happen with business debt and liabilities?
- How will the sale be structured?
- Am I prepared to stay on with the business after the sale?
- What does my post-sale life look like?
A recent article from Business of Home entitled “Thinking of selling your business? Now may be the time” discusses the market conditions for home-related businesses. With the pandemic keeping people home more often, sales of home goods have risen. Sales of home-related businesses have risen too.
What is driving sales of home-related businesses?
- Home boom due to the pandemic driving up valuations
- Supply chain crunches leading owners to want to get out
- Low interest rates
A recent article from Exit Strategies Group entitled “M&A Advisor Tip: Take a vacation to grow your value” discusses what business owners can do to make their business able to run without them. Why is this important? Buyers are more likely to be interested in a business that is not dependent on the owner, and they may be willing to pay more for it.
If your business is very dependent on you, the owner, then start spending a little time apart. Implement a strong management team with solid processes, and then remove yourself from the picture for a few days. Start slow with a long weekend and work up to a week off, multiple weeks off, etc. The goal is for the management team to be able to run the business effectively without you.